'Serious Market Problems' in the Fall—Gold to Hit $2500: Pro

Stocks fell on Tuesday after reports that jobless claims jumped last week and the Philly Fed gauge of manufacturing activity tumbled. Christian Thwaites, president and chief executive of Sentinel Asset Management, and Paul Schatz, president of Heritage Capital, shared their views.

“Since we had the big May correction, the market has been dominated entirely by macro economic and political events,” Thwaites told CNBC.

“When that happens, the market fundamentals tend to get pushed down.”

Thwaites said the economic news so far have been “not bad” and will support a possible 2 to 3 percent GDP growth.

“And within that, there’s some good bargains to be had, as this market has been spooked around sideways and lots of trading activities are masking good fundamentals and values,” he said.

In the meantime, Schatz said investors should expect a rally through June and into August—before seeing “serious problems” in the fall.

“Taxes are going up next year and so on the surface, people are going to have less money to invest and less money in the economy,” he explained. “We’ve also got a municipal crisis coming on the horizon that no one’s talking about.”

Schatz advised investors to accumulate gold in their portfolios.

“I think you can see $1,500 later this year and somewhere at $2,000 to $2,500 in this decade,” he said.